Summary#
Montréal city council adopted an orientation to award a contract to Les Entreprises Michaudville inc. for infrastructure and street work on Rue De Champlain in the Ville-Marie borough. The city’s position includes a maximum contract price and additional budgets, for a total of $14,417,925.33, taxes included. City staff say the goal is to improve the reliability of the water network and protect water supply.
- The work includes replacing water and sewer pipes, water and sewer connections, and utility conduits, and rebuilding parts of the street.
- The plans also include a bike path, sidewalks, lighting, trees and plants.
- The council’s orientation names Michaudville as the lowest compliant bidder from a public call for tenders that received seven bids.
- If approved, the contract price would be up to $11,160,000, taxes included, with separate contingency and incidental-cost budgets.
- The contract terms set a late penalty of 0.1% of the contract price, excluding sales taxes, per day, with a minimum of $1,000 a day. No bonus is provided.
The agglomeration council makes the final decision at a later meeting.
What it means for you#
- People served by the water network: City staff say the work is intended to improve water-supply reliability for about 180,000 people in Ville-Marie, Mercier–Hochelaga-Maisonneuve, Montréal-Est and Rivière-des-Prairies–Pointe-aux-Trembles. This is an expected benefit, not a guaranteed result.
- People living, working or travelling on Rue De Champlain: The planned work includes rebuilding road surfaces and sidewalks and adding a bike path. The materials do not set out a schedule or explain how access would be managed during construction.
- The contractor: If the contract proceeds, Michaudville would do the work and could face daily penalties for late completion under the contract terms.
- Residents and businesses generally: The orientation does not create a new fee, benefit or service for them.
Money#
The proposed total is $14,417,925.33, taxes included.
- The contract is capped at $11,160,000; contingencies are $1,194,312.06; incidental costs are $2,063,613.27.
- The materials authorize these amounts as part of the city’s orientation, but do not identify the funding source or say who ultimately bears the cost.
- Michaudville’s compliant bid was $2,781,687.44, or 18.47%, below the city’s final estimate. The second-lowest compliant bid was $218,983.84 higher.
- No contract duration or completion date is given.
What is unclear#
- The resolution’s operative text describes the work as between Rue Sainte-Catherine and Rue La Fontaine. The title and staff summary describe it as between Rue Sainte-Catherine and Boulevard René-Lévesque. The materials do not explain this difference.
- The contract term, construction schedule and arrangements for access during the work are not stated.
- The materials do not identify the source of the funding or allocate the cost among city services or other parties.
Case for#
- City staff say the existing 1,200 mm water main has had 13 major breaks and remains at high risk of another break. Replacing it could address a stated reliability and public-safety concern.
- The work combines water, sewer, utility and street improvements in one project.
- Michaudville was the lowest compliant bidder among seven bids, and its bid was below the city’s estimate.
Case against#
- The proposed total is substantial, and the materials do not identify its funding source.
- Michaudville’s bid was well below the estimate, while the second-lowest compliant bid was only 1.77% higher. The materials do not explain the size of the gap between the lowest bid and the estimate.
- The location discrepancy in the resolution and summary leaves uncertainty about the precise work area.